Richard Naidu: Why 15% VAT?

Fiscal Review Committee (FRC) chair Richard Naidu yesterday made it clear that business as usual was no longer an option and that Government needed to take drastic steps to ensure economic recovery.

Friday 21 April 2023 | 11:04

Inoke Rabonu

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Fiscal Review Committee chair, Richard Naidu. Photo: DEPTFO News.

Fiscal Review Committee (FRC) chair Richard Naidu yesterday made it clear that business as usual was no longer an option and that Government needed to take drastic steps to ensure economic recovery.

Mr Naidu said if the country had to continue as it was, based on the World Bank and also International Monetary Fund's numbers, Fiji would hit 100 per cent of debt to Gross Domestic Product (GDP) in 10 years.

He said the committee recommended a significant VAT increase, but not higher than 15 per cent with re-targeted support for people living in poverty.